The latest on-chain revelation suggests that the Bitcoin network has been experiencing a steady decline in high-value transactions over the last few weeks. This slowdown in network activity has been reflected in the price of Bitcoin, which has been struggling to break out of consolidation in the month of April. Despite multiple attempts to push past $67,000, the Bitcoin price has failed to hold above that level and has seen a drop of more than 2% in the past seven days according to data from CoinGecko.
Prominent crypto analyst Ali Martinez recently revealed on the X platform that Bitcoin whale activity has been on a downward trend for the past six weeks. This revelation was based on Santiment’s Whale Transaction Count metric, which tracks the number of BTC transactions valued at over $100,000 and $1 million. Whales in the cryptocurrency space are significant entities or individuals that hold substantial amounts of Bitcoin, giving them the power to influence market dynamics with large transactions that can spark speculation and price movements.
Martinez pointed out that the decline in Bitcoin whale activity since March 14, when the cryptocurrency reached a new all-time high of $73,737, has coincided with the lackluster performance of Bitcoin’s price. However, he also noted that a resurgence in high-value transactions could potentially boost the price of Bitcoin. The reasoning behind this is that increased network activity could signal a higher demand for Bitcoin, resulting in price appreciation.
Despite the choppy state of the market, there is a piece of on-chain data that suggests a growing demand for Bitcoin and a potentially bullish future for its price. According to Santiment, the number of active Bitcoin wallets has been steadily increasing. Active Bitcoin wallets are unique addresses holding BTC, and the data shows that the number of these “non-empty BTC wallets” has risen by more than 2.5% in the past three months.
The total amount of non-empty Bitcoin wallets indicates a growing interest in holding the cryptocurrency, even amidst fluctuations in price. This data may hint at a positive outlook for Bitcoin’s price in the future, as an increase in demand typically leads to higher prices.
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